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Michael F. Easley
Governor
State of North Carolina
Office of the Governor
Governor's Press Office
State Capitol, Raleigh, NC 27603-8001
(919) 733-5612 - Toll Free 1-800-662-7005
FAX (919) 733-5166
For Release: IMMEDIATE Contact: Sara Parsons
Date: Sept. 20, 2005 Phone: 919/733-5612
GOV. EASLEY SIGNS GARVEE BONDS, SECONDARY ROAD IMPROVEMENT BILLS Authorizes $900 Million in GARVEE Bonds and $68 Million in Road Improvements
RALEIGH – Gov. Mike Easley today signed House Bill 254 authorizing $900 million in Grant Anticipation Revenue Vehicle (GARVEE) bonds that will be used to help pay for federally-funded transportation projects of significant statewide benefit. The bill was sponsored by Rep. Jim Crawford (D-Granville, Vance). Easley also signed House Bill 750 amending the Secondary Roads Construction Program to allow the N.C. Department of Transportation (NCDOT) to change the current program from only paving unpaved roads to a comprehensive modernization program over the next four years. The bill was sponsored by Rep. Nelson Cole (D-Rockingham) and Rep. Lorene Coates (D-Rowan).
“North Carolina’s transportation needs continue to outpace available resources and these two bills will help significantly address that gap,” Easley said. “Our citizens will benefit with safer and better roads, and new jobs and economic development opportunities will be generated across the state.”
The GARVEE funding will be provided in the form of bonds issued by the State Treasurer’s Office and approved by the Council of State. These bonds will allow the state to build highway projects sooner and take advantage of current construction prices, resulting in cost savings. The use of GARVEE bonds for larger projects will also free up other funding for smaller projects across the state. The bonds are backed by federal revenue and will not affect the state’s credit rating.
As outlined in the legislation, the Transportation Secretary and the State Treasurer will jointly form a committee to develop a plan to address any legal and financial matters involved in issuing the bonds. That plan will be submitted to the Board of Transportation for review and comment and then to the co-chairs of the Transportation Appropriations Subcommittee and the co-chairs of the Joint Legislative Transportation Oversight Committee by Dec. 1.
House Bill 750 enables the NCDOT to continue its emphasis on paving unpaved state-maintained secondary roads, but beginning in 2006 it also provides $68.6 million in secondary road funds to be used for maintenance and modernization projects on paved secondary roads. Additionally, the bill requires $5 million to be set aside until fiscal year 2009-10 to pay for any unpaved secondary road that had previously been determined ineligible for paving.
-more-

Michael F. Easley
Governor
State of North Carolina
Office of the Governor
Governor's Press Office
State Capitol, Raleigh, NC 27603-8001
(919) 733-5612 - Toll Free 1-800-662-7005
FAX (919) 733-5166
For Release: IMMEDIATE Contact: Sara Parsons
Date: Sept. 20, 2005 Phone: 919/733-5612
GOV. EASLEY SIGNS GARVEE BONDS, SECONDARY ROAD IMPROVEMENT BILLS Authorizes $900 Million in GARVEE Bonds and $68 Million in Road Improvements
RALEIGH – Gov. Mike Easley today signed House Bill 254 authorizing $900 million in Grant Anticipation Revenue Vehicle (GARVEE) bonds that will be used to help pay for federally-funded transportation projects of significant statewide benefit. The bill was sponsored by Rep. Jim Crawford (D-Granville, Vance). Easley also signed House Bill 750 amending the Secondary Roads Construction Program to allow the N.C. Department of Transportation (NCDOT) to change the current program from only paving unpaved roads to a comprehensive modernization program over the next four years. The bill was sponsored by Rep. Nelson Cole (D-Rockingham) and Rep. Lorene Coates (D-Rowan).
“North Carolina’s transportation needs continue to outpace available resources and these two bills will help significantly address that gap,” Easley said. “Our citizens will benefit with safer and better roads, and new jobs and economic development opportunities will be generated across the state.”
The GARVEE funding will be provided in the form of bonds issued by the State Treasurer’s Office and approved by the Council of State. These bonds will allow the state to build highway projects sooner and take advantage of current construction prices, resulting in cost savings. The use of GARVEE bonds for larger projects will also free up other funding for smaller projects across the state. The bonds are backed by federal revenue and will not affect the state’s credit rating.
As outlined in the legislation, the Transportation Secretary and the State Treasurer will jointly form a committee to develop a plan to address any legal and financial matters involved in issuing the bonds. That plan will be submitted to the Board of Transportation for review and comment and then to the co-chairs of the Transportation Appropriations Subcommittee and the co-chairs of the Joint Legislative Transportation Oversight Committee by Dec. 1.
House Bill 750 enables the NCDOT to continue its emphasis on paving unpaved state-maintained secondary roads, but beginning in 2006 it also provides $68.6 million in secondary road funds to be used for maintenance and modernization projects on paved secondary roads. Additionally, the bill requires $5 million to be set aside until fiscal year 2009-10 to pay for any unpaved secondary road that had previously been determined ineligible for paving.
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